IGT Arranges $1.5bn Loan to Settle Debt Commitments
International Game Technology (IGT) has acquired a $1.5 billion loan deal that will be used towards repaying the 6.625% note and term loans due to mature in February 2018 and January 2019, respectively. The current loan responsibilities stand at €500 million and €800 million.
The new loan matures in 2023 and will be repayable in full at maturity with a variable interest rate which will be based on company’s credit ratings. Updating the market and shareholders, IGT informed that the company decided to voluntarily reduce the aggregate commitments of the multi currency revolving credit facilities by around 30%, dropping to about €2 billion.
Such a move will allow IGT to more closely match lower anticipated liquidity requirements and to create more flexibility under financial and non-financial covenants with the US dollar credit facilities currently standing at $1.2 billion, compared to Euro’s €725 million.
Further onwards, IGT expects to deliver an estimated $60 million in annualized interest cost savings. This will be achieved through the combination of the announced transactions, the recently completed tender for the 7,500% notes due in June 2019 and repayment of borrowings with money acquired from the recent sale of Dublin Down Interactive LLC.
Business As Usual
The London-based firm, International Game Technology, is a multinational gaming company which produces and develops slot machines and casino-related gambling technology. New York Stock Exchange-listed company is the global omnichannel leader whose integrated portfolio of products and services is reshaping the future of the gaming industry.
The newest financial moves of the company are considered as minor shifts in company’s efforts to execute its long-term business agenda.
“We are proactively managing our capital structure to drive significant savings in interest expense, extend maturities, and maximise financial flexibility in executing our business plan,”, Alberto Fornaro, IGT Group CFO, commented.